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Macroeconomic outlook report: Spain

Third quarter of 2018

During the third quarter of 2018, Spain's GDP showed a slowdown in its year-over-year growth rate with respect to the previous quarter of 0.09 p.p., standing at 2.42%. GDP lower growth was explained by the slowdown in domestic demand, which fell by 0.38 p.p. with respect to 2Q18, to 2.77%. The unemployment rate decreased by 0.73 percentage points to 14.55%, while the year-over-year growth rate of employment slowed by 0.31 p.p. from the previous quarter to 2.51%. Inflation rose from the previous quarter to 2.23%. With respect to the exchange rate, the euro depreciated against the dollar, with the average exchange rate at 1.16 $/€ in the third quarter of the year.

Macroeconomic overview

  • During the third quarter of the year, the year-over-year growth rate of the Spanish economy stood at 2.42%, a slowdown of 0.09 p.p. with respect to the previous quarter. This performance was due to the lower growth of domestic demand, which registered a year-over-year growth rate of 2.77% during 3Q18, after a quarterly deceleration of 0.38 p.p.
  • The adjustment in domestic demand was mainly due to lower growth in both gross capital formation and private consumption, partially offset by higher growth in public consumption.
  • The unemployment rate stood at 14.55% at the end of the third quarter, after a decrease of 0.73 p.p. from the previous quarter. The year-over-year growth rate of employment stood at 2.51% after a quarterly slowdown of 0.31 p.p.
  • The euro depreciated against the dollar during 3Q18, reaching an average exchange rate of 1.16 $/€ at the end of the third quarter of 2018, 0.03 dollars per euro lower than the exchange rate recorded during the previous quarter.
  • As for inflation, in 3Q18 the CPI growth continued with the upward trend started in the previous quarter, standing at 2.23%. This rate was 0.40 p.p. higher than in 2Q18. The evolution of the Consumer Price Index was mainly marked by the greater dynamism of the energy component.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).

© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.